FX.co ★ South Korean Won Rebounds

On Tuesday, the South Korean won appreciated to approximately 1,468 against the dollar, rebounding from losses experienced in the previous session. This recovery was attributed to stable inflation and a reduction in auto tariffs. In November, South Korea's inflation rate remained steady at 2.4%, leading to anticipations that the Bank of Korea will maintain its current interest rates in the short term, thereby supporting domestic yields beneficial for the won. Furthermore, the United States lowered auto tariffs to 15%, effective retroactively from November 1, which enhanced confidence in Korea's export prospects and anticipated stronger dollar inflows from the automotive sector. Additionally, authorities indicated advancements in extending the National Pension Service swap arrangement, which alleviates the structural demand for dollars by enabling the pension fund to acquire foreign currency without relying on the open market.